Willingness to Pay for Green Office: Evidence from Shanghai

The construction sector is a critical contributor to energy consumption and greenhouse gas emission. Promotion of green buildings may be a good way to tackle environmental problems. In this study, a choice experiment was undertaken to explore preferences and willingness to pay (WTP) for various attributes of green office buildings in Shanghai, with a sample of 309 respondents. Results of the mixed logit reveal that respondents value attributes relating to indoor comfortability and health, including Quiet Office Environment, Eco-Friendly Construction and Decoration Material, and Indoor Air Purification. Higher WTP is also observed for features of Power Saving and Water Saving, which provide both private and public benefits. According to heterogeneity analysis, people working in offices with a higher rent are more likely to pay for air purifier installation. In general, construction & manufacturing firms have higher WTP for Power Saving while lower WTP for Soundproof. On average, foreign firms are willing to pay more for eco-friendly materials. Finally, implications and suggestions for policymakers and building developers are discussed.